Long term disability insurance provides benefits in the form of income when you are unable to work for an extended period of time, such as several months or years, even decades in some cases. While many other insurance types will usually pay out lump sum benefits, such as life insurance benefits, long term disability policies pay out in installments over longer periods of time. For those who become disabled due to injury or illness and are unable to work for large amounts of time, long term disability benefits are critical to be for things like the necessary costs of living. That is why it is important to be aware of how long your long term disability benefits will actually last should you ever need to access them.
How Long Do Long Term Disability Benefits Last?
To learn about how long your long term disability benefits will last, let us start at the beginning. When you apply for long-term disability benefits, there are two central decisions you will need to make. You will need to decide what length of elimination period you are comfortable with. You will also need to decide what length of your benefit period you are comfortable with. You should then select a policy accordingly.
The elimination period, also referred to as the “waiting period,” is the amount of time you must wait after you become disabled before you can start receiving long term disability benefits. Elimination periods can range anywhere from 30 days up to 6 months or even a year. The benefit period refers to the amount of time when benefits will be paid out. Some long term disability benefits will only provide benefit periods for two years and some will pay out benefits until retirement. Choosing the length of the elimination period and the benefit period will largely depend on things like your own financial situation as well as what other insurance policies you may have in place and what you can actually afford.
So, the length of time you can receive benefits under a long term disability policy will largely depend on the terms of your individual policy. Most long term disability policies will have a Maximum Benefit Period. The Maximum Benefit Period is the longest amount of time you will be eligible to receive your long term disability benefit payments. It is important to note, however, that you will not necessarily receive benefits for the entire Maximum Benefit Period. You will receive benefits as long as you remain disabled pursuant to the terms of your policy, up to the Maximum Benefit Period. To find out what the definition of disability is under your policy, look at the language of the policy itself.
Do you want to learn more about long term disability insurance? Do you need assistance accessing or understanding your long term disability benefits? Disability Advocates Group is here to help. Contact us today.